(a) All residential water customers shall deposit twenty-five dollars ($25.00) with the Town clerk-treasurer at the time of applying for service. Such sum shall be kept by the clerk-treasurer as a deposit and guarantee for the payment of water bills.

(b) All commercial water customers shall deposit fifty dollars ($50.00) with the Town clerk-treasurer at the time of applying for service. Such sum shall be kept by the clerk-treasurer as a deposit and guarantee for the payment of water bills. All deposits required by this section shall be held by the Town until the final water bill is paid.